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1. Technical View (Equity)
Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 11,377.75 -1.19% 11305 11340 11405 11440 11500
Sensex 37585.51 -1.33% 37240 37415 37720 37895 38200
Nifty Daily Chart
Comments:
Nifty opened with a downward gap and selling pressure throughout the session dragged it lower to end
near lowest point of the day. Nifty closed at 11378 with a loss of 137 points.
On the daily chart the index has formed a long bearish candle forming lower High-Low compare to
previous session indicating negative bias. The index is moving in a Lower Top and Lower Bottom
formation on the daily chart indicating negative bias. The chart pattern suggests that if Nifty breaks and
sustains below 11340 levels it would witness selling which would lead the index towards 11300-11250
levels. However if index crosses above 11400 level it would witness pullback rally which would take the
index towards 11430-11470 levels. Nifty is trading below its 20 day SMA which indicates negative bias in
the short term. Nifty continues to remain in a downtrend in the short term, so exit on small pullback
rallies to be our preferred strategy.
The daily strength indicator RSI is moving downwards and is quoting below its reference line indicating
negative bias. However momentum oscillator Stochastic has turned positive from the oversold zone
indicating a possible consolidation or an up-move in the near term.
The trend deciding level for the day is 11405. If NIFTY trades above this level then we may witness a
further rally up to 11440-11500-11540 levels. However, if NIFTY trades below 11405 levels then we may
see some profit booking initiating in the market, which may correct up to 11340-11305-11245 levels
Stocks to focus for intraday Long Bpcl, Avantifeed, Bharatfin, Canfinhome,
Chennpetro
Stocks to focus for intraday Short Bajfinance, Coalindia, Titan, Alkem, Amarajabat